Thinking of investing in real estate in Cyprus?

This article was published on Sunday 24 April, 2016.

The real estate market on the island of Cyprus is gradually coming out of a long six year recession period and the signs of the recovery that it is showing point to the fact that now is a suitable time for someone to invest in this market not only for personal use, but also for buying to let or for capital gains purposes.

The country’s government has adopted incentives to boost the market and under these if a transfer of the ownership of a property is completed before the end of 2016, then the ownership transfer fee (stamp duty) is charged at 50% of the normal rate. Moreover, an additional incentive to invest now is that no capital gains tax is incurred for real estate that is acquired (if not necessarily transferred) within 2016, and sold at any time in the future.

Other developments, such as a big increase in the number of tourist arrivals expected for the summer 2016 season, which is also bringing a rise in the number of airlines connecting to Cyprus, thanks to the forward looking open skies policy being pursued by the governments, are also expected to give a great boost to the popularity of Cyprus as a destination and as a property location.

Furthermore, due to deflation following the financial crisis, the country’s cost of living index has decreased and it now ranks 12th in the entire EU. All these point to the fact that those on the hunt for acquiring property for any reason should definitely start visiting local properties in Cyprus in order to get a first-hand look at what the island’s real estate market can offer and shape their own opinion on the possible benefits, opportunities and lucrative potential that it opens up.

If you are about to look for properties in Cyprus, below is an indicative table of price guides, to know what you should expect. Since prices are determined by and dependent on each property’s location, quality, proximity to the beach, size and plot extent, the prices quoted below are just an indication and a frame of reference and apply most to new properties. If you are interested in a re-sale then you can expect the prices asked to be lower:

Property type

Size

Indicative Price Range

Villa with pool

100m2, two-bedroom villa with a pool

€150,000-€250,000

Villa with pool

125m2, three-bedroom villa with a pool

€250,000-€400,000

Apartment with facilities

90m2, two-bedroom flat:

€180,000

Apartment with facilities

110m2, three-bedroom flat:

€220,000

Those interested in office spaces should expect to find the newer, high-tech venues priced at €3,000 per m2 (rental at €15 per m2 per month), with older buildings marketed at €2,000 per m2 (rental at €10 per m2 per month). However, it should be noted that prices in the capital, Nicosia, are often found to be between 10%-15% lower than elsewhere.

When it comes to Luxury/beach accommodation, beach villas come at €5,000-€10,000 per m2, while beach apartments at €3,000-€4,000 per m2, while those located at less popular or non-beach tourist areas, cost 25%-35% less.